Commercial Properties Are No Longer The Second Choice For Singapore Investors

For the last twenty years, residential investments have remained the top choice for real estate investment for the Singapore investors. “Condominiums” are so sunk into investor’s mind that it is as though “if you have not invested in one, you do not know much about investing in Singapore”. Commercial investments look alien in a property investor’s mind.

However, since three and a half years ago, the government started to introduce cooling measures to cool down the residential market. After seven major and a couple of small rounds of cooling measures, the residential market has come to a standstill. Indeed, residential price indexes have been dropping for the past few quarters. Investors have no choice but to turn to commercial and industrial real estate investments to continue growing their property

portfolios. In the midst of pursuing commercial and industrial investments, they found gold mine.

Commercial property prices have been climbing steadily since three to four years back. Not only have prices been rising, rental is also sky rocketing. In additional, there are no cooling measures in the commercial sector. In comparison, commercial investments outshine residential at this moment.

With more and more investors crossing over to commercial, this sector will continue to outperform other real estate sectors. While learning the game of commercial real estate investments, investors realized a few hard facts. Firstly, rental yield in commercial investments (about 3%-4.5% ) double residential investments (about 2%-2.5%). Secondly, capital gain is never

anything less in commercial. On average, for the last 20-25 years, condominiums prices have gone up about 3-5 times. Landed properties prices have risen about 6-8 times. However, prices of shophouses have gone up by an astonishing 30-50 times. Investors who are financially savvy realize it makes more sense to grow their wealth in commercial than in residential.

Through learning and experiencing, investors recognize that in many aspects, commercial real estate investments are more superior to residential investments. Therefore, going forward, commercial investments will no more be a second choice for real estate investments in Singapore.

David Poh, CEO

Address

Project

Sold On

Sale Price (S$)

S$ PSF

Bought On

Holding Period (y)

Profit (S$)

69 Boat Quay

16-12-14

9,280,000

7,884

12-08-09

5.3

5,080,000

13++ Duxton Hill

23-12-14

8,800,000

5,855

11-07-01

13.5

6,380,000

148 Neil Rd

23-01-15

10,100,000

6,368

25-12-12

2.1

3,800,000

48++ Peck Seah St

06-01-15

14,175,400

5,041

01-05-01

13.7

9,475,400

52++ Peck Seah St

06-01-15

15,238,000

5,549

56 Peck Seah St

06-01-15

13,386,600

5,046

161 Telok Ayer St

03-11-14

9,380,000

6,308

13-11-93

21.0

7,400,000

70 Anson Rd #26-01

Hub Synergy Point

16-12-14

9,971,770

2,401

70 Anson Rd #27-01

Hub Synergy Point

16-12-14

20,000,000

1,512

10 Anson Rd #15-14

International Plaza

13-11-14

1,000,080

2,165

25-05-07

7.5

333,574

10 Anson Rd #23-03

International Plaza

16-12-14

1,850,000

1,977

07-10-94

20.2

417,200

11 Collyer Quay #01-21

The Arcade

02-01-15

1,950,000

7,895

6 Eu Tong Sen St #05-20

The Central

11-11-14

1,570,000

2,472

30-08-11

3.2

370,000

2 Havelock Rd #02-01

Havelock II

04-11-14

1,334,700

4,008

2 Havelock Rd #02-10

Havelock II

08-12-14

938,000

3,636

2 Havelock Rd #02-11

Havelock II

05-01-15

1,238,000

3,599

2 Havelock Rd #05-05

Havelock II

18-12-14

1,136,000

2,459

2 Havelock Rd #05-14

Havelock II

15-12-14

1,514,000

2,426

2 Havelock Rd #05-15

Havelock II

15-12-14

3,337,000

2,095

2 Havelock Rd #06-03

Havelock II

22-12-14

1,433,888

2,468

2 Havelock Rd #B1-20

Havelock II

04-11-14

1,103,800

5,134

20 Maxwell Rd #07-01

Maxwell House

08-12-14

528,000

1,963

01-06-95

19.5

223,000

1 Park Rd #01-35

People'S Park Complex

10-12-14

2,750,000

6,084

12-10-99

15.2

1,450,000

138 Robinson Rd #02-50

Oxley Tower

20-11-14

830,000

7,034

10-10-12

2.1

120,000

Source: Hiwire Data / URA

CET D&D Nov 2014

.COM Jan 2015

PropertyGuru Agent Summit Jan 2015

Bi-Annual Company Retreat Feb 2015

I am very impressed with the whole course. The course is very comprehensive and suitable for agents who want to become commercial agent and for those investors who want to invest in commercial property.

It covers basic essential knowledge to financial planning tools on how to select good investment property.

Alex LimProperty Agent

First of all, I really liked how you taught the course in a very energetic and interesting way as I believe this has helped me to absorb the knowledge.

Second, I liked it that what you taught are very practical and not abstract, theoretical knowledge. I also liked the case studies that helped to illustrate the points you were trying to make.

Last but not least, I like it very much that there is a giving element i.e. World Vision, GIMC as ultimately, the biggest fortune and joy is to give generously.

Ang Wei HeongProperty Investor

This Competitive Online Marketing Programme has been most invaluable to property agents in current market environment where internet marketing is overtaking many marketing channels in effectiveness.

Thang Chze Lin DoreenProperty Agent

To share your testimonial, write in personally to David Poh at: davidpoh@dpgroupi.com

Commercial / Industrial Real Estate

Workshop Dates

Program Dates

For Investors
Date: 2 Mar 2015 (Mon)
Time: 7.00pm to 10.45pm

Date: 17 Mar 2015 (Tue)
Time: 7.00pm to 10.45pm

For Agents
Date: 3 Mar 2015 (Tue)
Time: 2.00pm to 6.00pm

Date: 11 Mar 2015 (Wed)
Time: 2.00pm to 6.00pm

For Investors
Date: 5 Mar 2015 (Thu)
Time: 6.30pm to 10.30pm

Date: 6 Mar 2015 (Fri)
Time: 6.30pm to 10.30pm

Date: 7 Mar 2015 (Sat)
Time: 10.00am to 10.00pm

For Agents
Date: 13 May 2015 (Wed)
Time: 10:00am to 10:00pm

Date: 14 May 2015 (Thu)
Time: 10:00am to 10:00pm

Date: 15 May 2015 (Fri)
Time: 10.00am to 8.00pm

Competitive Online Marketing for Agents

Workshop Dates

Date: 2 Mar 2015 (Mon)
Time: 2.00pm to 5.00pm

Date: 17 Mar 2015 (Tue)
Time: 2.00pm to 5.00pm

Program Dates

Date: 20 Apr 2015 (Mon)
Time: 9.30am to 7.30pm

Date: 21 Apr 2015 (Tue)
Time: 10:00am to 7:30pm

Date: 22 Apr 2015 (Wed)
Time: 1:00pm to 6:00pm

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